When you go bankrupt...

2»

Replies

  • And they freeze your bank account/s, what happens to any state benefits that get paid into them as that is the only money I have to live on for me and the kids and they take that long to sort payments out anyway, I'm scared I'll be left with nothing to support us.:

    the bank may freeze the accounts but not always. In the statement of affairs section 5.4 you have to tick a box if your incomeis paid in, and state the balance: you should cl;eaerly state £X credit or £X overdrawn.

    If account is used for income and is in credit, OR will send letter saying account may stay open BUT it is up to the bank. If the bank decide to freeze OR will fax bank instructing them to release credit balance monies to you, if the money is neccessary for day to day living expenses.

    If accountis overdrawn as of bankruptcy order date, it is a debt in bankruptcy so cant be repaid and likely account will be closed.



    If you hold a basic bank account, would they still freeze that if you can prove only benefits go into it?

    think i haver answered this above. some banks will eg abbey and natwest dont want to operate accounts for undischarged bankrupts

    How long do they freeze the accounts for?

    sometimes until they hear from OR that the OR has no further interest in the account (ie willnot be claiming money in there as an asset) or account is closed if it is the banks policy.
  • and if its a basic account you can keep the card and use it to withdraw monies. only cards for overdrawn accounts, credit/store cards need to eb sent to the OR
  • jellycat40jellycat40 Forumite
    820 Posts
    You will need to get the court to send you the forms you need. There is a whole site about going bankrupt which is set up by the insolvency bureau who deal with bankruptcy.

    It costs about £400 but you can pay a lesser amount if you are on benefit. You may need time to save the cash as they don't take other payment.

    PM me if you want and I will answer you privately.

    Louise
    Nobody is perfect - not even me.
  • bluezonebluezone Forumite
    772 Posts
    Part of the Furniture 500 Posts Combo Breaker
    phone up your local county court - number is in the phone book or online and they will send you the forms.
    😁
  • The Court fee is £150 and can be waived.
    The BR fee is £325 and must be paid.
  • Hi, there is an account with the post office you can get just for having benefits paid into, it was brought in when they did away with the books you used to sign and get your money with, it is called a post office card account, you can not go overdrawn, or do direct debits throught it, you cant even pay money into it, but you will be able to get your benefits payed into it, just go get the form from the post office, it will take a couple of weeks to get it up and running, then just tell the benefit people what the new account number is, I have been assured that the OR does not close this account or freeze it, so this may be your way forward if you do decide to go BR, at least you will still get your money to live on, and after all we all know the banks... often say one thing and do another, even if you ask the bank and they say its ok, they could still close it, right hand not knowing what the left hand is doing with half of them, I got one of these accounts when I started to get into trouble as my bank would not allow me to withdraw my benefits when I started to get into debt with them, I was left a couple of weeks with nothing, thank god for good old mum and dad, they did eventually give it back to me, but that didn't help in the meantime.
    Hope this helps, good luck.
    Looking to the horizon... instead of over my shoulder real soon!!:rolleyes:
  • Whoops... sorry everyone, for some unknown reason I was in the wrong place.... hmmm maybe some strange time warp occuring!!!! didn't realise I was reading old posts :embarasse
    Looking to the horizon... instead of over my shoulder real soon!!:rolleyes:
  • user55user55 Forumite
    345 Posts
    I have been assured that the OR does not close this account or freeze it,

    The OR doesn't freeze or close any account - it's the banks who do that when they are informed of your bankruptcy. The OR can tell the bank they have no objection to you keeping a particular account, but even then it's still up to the bank.
  • fermifermi Forumite
    40.6K Posts
    10,000 Posts Combo Breaker Intrepid Forum Explorer Rampant Recycler
    user55 wrote: »
    The OR doesn't freeze or close any account - it's the banks who do that when they are informed of your bankruptcy. The OR can tell the bank they have no objection to you keeping a particular account, but even then it's still up to the bank.

    That is true, and in the the case of the 'Post Office Card Account' the OR says this:
    viii Post office card account
    A post office card account is operated by Citibank International PLC through the post office and can only be used to receive benefit, state pensions and tax credit payments. There is no overdraft facility on this account, and no other payments, such as wages, can be paid into it. No credit checks are undertaken when the account is opened. The official receiver will therefore have no interest in the balance of such an account and should not take the cash card for one of these accounts from a bankrupt.

    In addition it is also the policy of the Post Office to never to freeze, close, or suspend this account due to bankruptcy, again for the reasons given above. :)
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
This discussion has been closed.
Latest MSE News and Guides

Iceland now offers interest-free loans

But be careful - they'll impact your credit score

MSE News

Vanilla, veg & vexatious neighbours

This week's MSE Forum highlights

MSE Forum

Up to 10% off Macs and iPads

For students, teachers & parents of students

MSE Deals